Dutch-Bangla Bank’s the Hague-based corporate sponsor Netherlands Development Finance Company (FMO) has offloaded its entire stakes in the bank after 24 years, leaving the local bank’s moniker an oxymoron.
The sponsor has sold 46.92 lakh shares at the prevailing market price. At present, the market price of the stock is Tk 72, meaning the sell-off will yield about Tk 33 crore.
The shares were snapped up by little-known Horizon Associates from the block market, which is a platform of the stock exchange where a large number of stocks are traded in a single transaction at a negotiated price.
The transaction price may not match the traded price on a public market.
“FMO’s strategy is that they invest in new prospective companies and sell stakes when they become profitable,” said Abul Kashem Md Shirin, managing director of Dutch-Bangla Bank Ltd or DBBL.
The Dutch company had earlier sold 29 percent of its holdings and offloaded the remaining 1 percent now, Shirin told The Daily Star.
Horizon Associates bought about 5.60 crore shares from FMO earlier this year.
According to the yearly financial report of 2018, sponsors of the bank hold more than 17.39 crore shares, or 87 percent, of which 5.13 crore shares are owned by foreign sponsors.
Presently, one foreign investor from Hong Kong remains with the bank and it appointed Tang Yuen Ha, Ada as a nominated director from their part.
Md Abdus Salam, a sponsor of the bank, transferred entire holding of his stake of 2.97 crore shares to Horizon in April. Abedur Rashid Khan, another sponsor of the bank, transferred his entire stake of 2.61 crore shares to Horizon in July. With the latest transaction, Horizon will hold more than 6 crore, or 12 percent, shares of DBBL.